BS"D

RULES AND CAVEATS

Pivot Magic Trading Course
First rule:
"...Any time you don't know what is happening, get out!"

http://www.TradingThingys.com

MARKET IN REVIEW - LITE
Monday (12 December 2005)
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Well, the inside Long-term Sideways Channel once again proved its strength. Made for a nice trade Monday!

Tuesday is FOMC so watch your money; train's coming!

My apologies for the chart. My screen captures for the last hour didn't come out. I didn't watch the screen after 13:00 (see commentary) so I don't know what happened to Quote.com, but when I went back 12 hours later to get better pictures Quote.com data stream was down. Still not up, BTW.

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1 = Moveout Monday opens with a Bear Anomaly (Overnight, bottom left chart) off the R1//HighM/blue line (inside L-T Sideways Channel ceiling).

A = If you took the signal, this is the second healthy red candle closing below R1. Move profit-locking stop above R1, reducing Undefended At Risk.

2 = Nice "P" second hit on R1/blue line. Low risk entry. If you already took = 1, add a contract.

B = If you are in the trade, 2nd healthy red candle below blue line. Move profit-locking stop above the long-term (inside) Sideways Channel ceiling (blue line).

C = Test of MA finally fails. Move profit-locking stop above the MA.

Mid-lunch and the trade is now locked-in profitable!

D = Price Action easily overran the Pivot/Close. Second healthy red candle closes below the Pivot. Move profit-locking stop above the Pivot.

Notice that this Bear charge is 12 red candles with only one tiny white breather candle interrupting! Wow! That's close to a record!

E = Giant red candle/failed test of MA. Per our rules, move profit-locking stop above the high of the candle.

As Price Action approaches the (inside) Long-term Sideways Channel floor (blue dashed line), this is the first of two red DVS bars (Desperation Volume Spikes, middle chart). That is a sign of exhaustion. Get ready to Pivot scalp exit.

F = Ideal exit as soon as the Price Action tapped on the L-t Channel floor and pulled back.

G = If you were greedy and held on, this red Bull Dragonfly and DVS Reversal (middle chart) combination is a classic "Exit Now" signal. Ideal exit as soon as the Price Action crossed back above the blue dashed line.

5.75-7 points, depending how/when you entered and exited.

4 = The "Exit Now" is also a "P" off the Channel floor. With the Pivot showing no influence (12:30) one might have entered. Not good ole risk-conservative me though!

Time to shut/walk away from the monitor.

5 = Squint and see a 123 at the Pivot. "S" entry for the brave. A little close to EOD hiccup Danger Time Zone and the Volume is sketchy. Best choice is to sit it out.

PERSPECTIVE
(Daily, bottom right chart)

Not a lot to add to yesterday's commentary. The "inside" Long-term Sideways Channel ceiling (blue line - Excuse the pixel slip, couldn't get it more exactly drawn.) and floor (blue dashed line) clearly contained Monday's Price Action.

REMINDER: FOMC at 2:15.

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com

Monday's PMT chart: